All posts tagged monthly

  • The Monthly story: ‘Queen’s Man: Jarrod Bleijie’, March 2014

    A story for the March 2014 issue of The Monthly, and my first essay for the magazine: a profile of Queensland’s attorney-general, Jarrod Bleijie. Excerpt below.

    Queen’s Man

    The crazy brave populism of Jarrod Bleijie

    The Monthly story: 'Queen's Man: The crazy brave populism of Jarrod Bleijie', March 2014, by Australian freelance journalist Andrew McMillen

    One Friday evening last September, some 60 members of the Bandidos motorcycle gang descended on a busy restaurant in the Gold Coast suburb of Broadbeach to confront a man associated with the Finks, a rival gang. In the ensuing melee, four police officers were injured. Later, a smaller group of Bandidos assembled outside the nearby Southport police watch house in an apparent show of support for their 18 arrested peers.

    For Queensland’s attorney-general, Jarrod Bleijie, that evening was a “line in the sand”. Three weeks later, just before 3 am on 16 October, the Liberal National Party–dominated state parliament passed three pieces of bikie-related legislation, including the bill that would become the Vicious Lawless Association Disestablishment (VLAD) Act. “Recent events have proved that certain groups have no regard for the Queensland public,” Bleijie said. “Enough is enough. By restricting their movements and operations, the community is protected and it prevents these groups from running their criminal enterprises.”

    Under the VLAD Act, a “vicious lawless associate” found guilty of any criminal offence listed in the legislation, from the smallest drug possession charge up, would serve a mandatory prison term of up to 25 years on top of their sentence. The Tattoo Parlours Act bans members of criminal associations and their associates from operating, working in or owning tattoo parlours. The Criminal Law (Criminal Organisations Disruption) Amendment Act amends various pieces of legislation to label 26 motorcycle clubs as criminal organisations and ban their members from congregating in groups of more than three or meeting at their clubhouses. The Queensland government would go on to establish a “bikies only” prison, where inmates may be dressed in fluoro pink overalls.

    Police have arrested dozens of people under the new laws, including a group of five men drinking beer at the Yandina Hotel on the Sunshine Coast and a group of five Victorian men buying ice-creams on the Gold Coast. Clubhouses were closed; interstate bikies called off their trips north. The United Motorcycle Council Queensland hired a PR firm. Tearful family members hit the airwaves. A High Court challenge was touted (and is in train). Meanwhile, protesters took to the streets, on motorcycles and on foot. The tabloid press, normally so keen to demand a crackdown, any crackdown, on crime, no longer knew which way to turn. Even the Queensland premier, Campbell Newman, appeared to waver for a moment, hinting that the laws might be a temporary measure.

    But Bleijie remained steadfast. As he put it in a radio interview at the time: “These laws are targeting these particular types of grub and thug to make people in Queensland safe in their homes at night. They don’t have to worry about these types of thugs on our streets any more … We’re dealing with a different type of criminal: the toughest of the toughest and the worst of the worst.”

    The VLAD Act, with its broad definition of “vicious lawless associate”, would target not only criminal motorcycle gangs but also organised crime gangs that are not “patched” – “akin to the Mafia in the States”, Bleijie said in the same interview – and paedophile rings “that are grooming and doing all sorts of terrible things to our young kids”.

    In Bleijie (whose Dutch surname rhymes with “play”), Queenslanders suddenly had a tireless warrior for law and order: a former lawyer who could debate the finer points of complicated legislation through the dead of night, then front up to a morning media conference looking no worse for wear. The Courier-Mail dubbed him “boy wonder”, Robin to Newman’s Batman.

    The night after the passing of the anti-bikie legislation, another populist bill was sped through parliament. This one was a response to the case of Robert John Fardon, a 65-year-old who had served time for a number of violent sexual offences against girls and women, including acts committed while on parole. In 2003, Fardon became the first prisoner to be detained indefinitely under Queensland’s Dangerous Prisoners (Sexual Offenders) Act, legislation introduced by Peter Beattie’s Labor government. Last year, a review by the Supreme Court of Queensland ordered that Fardon be released on strict conditions. In response, Bleijie introduced an amendment to the legislation that would allow him to ask the governor to make a “public interest declaration” to keep offenders like Fardon behind bars.

    In legal circles, the amendment was branded a publicity stunt, and Bleijie was ridiculed for not understanding the separation of powers – the courts, not politicians, send people to prison. Tony Fitzgerald, the man who’d led the inquiry that had exposed corruption and political interference at the highest level in Joh Bjelke-Petersen’s government 25 years earlier, was prompted to write in Brisbane’s Courier-Mail: “It is incomprehensible that any rational Queenslander who is even remotely aware of the state’s recent history could for a moment consider reintroducing political interference into the administration of criminal justice, even to the point of making decisions about incarceration.”

    Weeks later, Queensland’s Court of Appeal struck down the new laws, agreeing that they would have required the Supreme Court to “exercise powers repugnant to or incompatible with [its] institutional integrity”.

    “To have any politician alone decide who’s going to be in jail or not is scary,” says Dan O’Gorman, a prominent Brisbane barrister. “I’ve acted for Fardon for seven years. He’s had a terrible life himself, which doesn’t justify his behaviour, of course. But Fardon is not the issue; the issue is the process. [Bleijie] just doesn’t seem to understand the role of an A-G. Unfortunately, not only has this fellow not defended the institutional integrity of the judicial process, he’s the leader of the cheer squad that’s attacking the courts. It’s an unbelievable situation.”

    To read the full 3,000 word story, visit The Monthly’s website.

  • The Monthly story: ‘Only The Lonely’, August 2013

    A story for the July 2013 issue of The Monthly. The full story appears below; illustration by Jeff Fisher.

    Only The Lonely

    After midnight with ‘Psychic TV’

    On a dark and stormy Thursday night, broadcasting live from a TV studio in northern Sydney, clairvoyant Francis Bevan “reads” one viewer after another, using their birthdate. Margaret, born on 24 June 1961, wants to know whether she’ll ever fall in love again. Laura (12 December 1986) wonders whether she’ll have more kids. Janelle (6 December 1964) asks whether her mother is happy “on the other side”.

    Bevan next turns his attention to Eileen, the night’s oldest caller by some margin. She’ll be 70 on 15 July. In a voicemail message broadcast on the studio’s speakers, Eileen asks what the future holds, “whether there’s any money coming, and will I move?”

    Staring straight into the camera, Bevan tells Eileen she will move, in six to 12 months’ time. She’ll sell her property and end up close to water. Meanwhile, two men, one a father figure, the other closer to her in age, will watch over her.

    “We’re going to get the lovely Mal to use her psychic fingers to pull you out two tarot cards,” says Bevan, as the producer rings a bell to indicate that 90 seconds have elapsed. Malvadee McIver, the smiling, sprightly host, selects two cards from the deck. Bevan glances at the cards.

    “Definitely the sale of the property is going to happen,” he continues. “We’ve got the High Priestess here, and the Knight of Swords. This tells us there’ll be sudden decisions, but positive ones. I hope you’ve enjoyed the reading. Have an absolutely fantastic 2013.”

    This is the format of Psychic TV, a two-year-old program filmed in Frenchs Forest and screened nationally Thursday to Sunday, between 11 pm and 2 am. Queries are raised by Australian viewers and answered by a rotating cast of psychics – tonight, two men and two women – who take turns sitting at a desk beside McIver.

    Bevan, a former police officer, was 2007 NSW Psychic of the Year. He wears a dark suit with a bright pink shirt, and rarely smiles on camera. Fellow psychic healer Christian Adams wears a suit jacket over an open-neck shirt, showing off his crystal pendant, and reads auras by closing his eyes, tilting his head and gesturing wildly.

    While the men could pass for car salesmen, the two women are dressed more suitably for astral travel. Tarot reader Amira Celon wears a striking white caftan with gold accessories. Psychic medium Kerrie Erwin wears a floor-length leopard-print dress and red lipstick. All four are middle-aged.

    The three psychics not directly addressing the viewers remain visible in booths, taking live phone calls. Names, birthdates and star signs are read in a background blur. Time is money, after all. Psychic TV charges $5.45 per minute, or $4.75 for those who have registered their credit card details and authorised $100 in credit. Text messages cost $5 apiece.

    But the night – the crew’s first on the newly constructed, purple-hued set – is not without technical difficulties. At one point the show’s graphical overlay, which displays three phone numbers as well as the command prompts to reach the three psychics in their booths, suddenly disappears. Production manager Danny Stocker runs frantically between the studio and the bank of broadcasting technology stacked in the next room. On the phone to tech support, the 38-year-old barks: “It’s very urgent because we’re not making money!”

    It’s 34 minutes before the graphics reappear on screen. In the interim, McIver enthusiastically repeats the phone numbers every few minutes, but the pace noticeably slows.

    Exactly who watches Psychic TV is not clear. Free-to-air viewers find it on the digital channel TV4ME; Austar subscribers via the Aurora channel. The show’s Facebook page has 12,000 fans, 9000 of whom are women. “A large percentage of the population hasn’t heard of us,” admits Michael Charlesworth, who owns Interactive Media, the company behind the show. He yawns – he’s not usually on set this late. “That’s what we want to change.”

    An hour into the show, at midnight, the production team – uniformly youthful, some still studying media at university – ask whether I’d like a live reading. My details are sent through as a text message. “Andrew was born on 10 February 1988 and requests a general reading. He loves the show!”

    Kerrie Erwin shuffles her cards. “Put your seatbelt on, because you’ve lots of changes ahead, Andrew,” she says, specifying a new career and a move interstate, both of which are news to me. Then she switches to a picture message from Gina, 25, who asks what Erwin “can see happening in the next three months, particularly in romance”.

    Three hours of psychic television pass surprisingly quickly. There are plans to add Wednesday nights to the schedule, which would take the total to 15 hours of live advertising each week. When Bevan ends the night’s final call, the automated telephone system reports that the four psychics, plus a few others listed on-screen as working from home, have clocked 1231 minutes – a gross taking of about $6000. (The call times are rounded up, as technically the four psychics have potentially 720 minutes between them.) A producer tells me that 1400 minutes makes for a “good night”.

    It’s just past 2 am. The crew are outside in the chilly air, smoking. Amira Celon kindly offers to drive me to my destination. Her silver Toyota Yaris is making a strange noise. We travel south, along State Route 29, for ten puzzling minutes before she determines the cause: it’s the bottom of her white caftan, trailing out the door.

  • The Monthly story: ‘Chalking The Walk’, May 2013

    A story for The Monthly in the May 2013 issue – my first contribution to the magazine, in ‘The Nation Reviewed’ section. The full story appears below; the illustration is credited to Jeff Fisher.

    Chalking The Walk

    The Monthly story: 'Chalking The Walk' by Andrew McMillen, May 2013On a Tuesday morning in March, 80-odd young people wearing red T-shirts hopped off two buses in Lismore, in northern New South Wales, and began canvassing shoppers and retailers in the central business district. Their quest, as declared on their chests, was to help end extreme poverty. Not in Lismore per se, but globally, by petitioning the federal government to bump up its foreign aid spending.

    The team was one of many converging on Canberra from around the country, as part of “The Roadtrip”, a week-long campaign organised by the Oaktree Foundation, the youth-run group that also arranged the MAKEPOVERTYHISTORY concert in 2006. About eight hundred “ambassadors” were taking part all over the country. Their aim was to gather 100,000 signatures, or around 125 each, over the course of the trip via a smartphone app.

    The target didn’t sound overly ambitious. But, by noon, many of the locals out and about in central Lismore had been approached several times. Some were starting to get ticked off. “We’re actually irritating people now,” noted a group leader, Tammy, and the entire team retreated to a McDonald’s restaurant, where the buses were parked. One overweight team member was in tears. A local woman had accosted her, shouting: “If you stopped eating at fuckin’ McDonald’s, there wouldn’t be any poverty!” The canvasser’s peers moved in to soothe her. “That’s really rude,” someone countered.

    Three days earlier, the volunteers, aged from 16 to 26, had met for the first time at the University of Queensland in Brisbane to undertake an intensive course in political campaigning. Most were university students; a handful were still in high school. Ebony from Townsville was a champion skateboarder pining for her board. James, 21, was a soccer-mad Scot. Emily Rose, a petite redhead, showed off an unnerving party trick: the ability to dislocate her limbs at will. Each had stumped up $400 to cover food, travel and accommodation costs.

    The ambassadors had been taught some handy lines: “The door to ending poverty is opened by thousands”; “Two-thirds of the 1.3 billion worldwide living in poverty are our neighbours”; and “Australia’s fair share is just 70 cents in every $100 to fight global poverty”. This last line was central to the campaign. In 2000, Australia agreed to adopt the United Nations’ Millennium Development Goals, aimed at reducing extreme poverty. This meant setting aside 0.5% of Australia’s gross national income for foreign aid by 2015 (recently put off till 2016) and 0.7% by 2020. Currently, the nation contributes 0.37%.

    “The government has made a commitment,” the Roadtrip ambassadors pitched to shoppers. “We’re here to keep them true to that.” At night, the team slept rough in local church and sports club halls. By day, when not canvassing or on the buses, the team courted the local media, debriefed, attended further campaigning lessons and enjoyed “personal energising time”, as spare hours were denoted on the itinerary. Some members worried that they were falling behind on their petition targets. “Relax, it’s not about the signatures,” said a group leader. “It’s about the movement.”

    The day before they were in Lismore, the team had detoured briefly to the retirees’ paradise of Bribie Island, where half the group “chalked the boardwalk” with messages – “Help keep the promise of a fair share!” – while the other half were assigned the task of “painting the town red”, by asking local businesses to display campaign posters in their shop windows.

    Many shop owners were charmed enough to comply. “I don’t think they’ll achieve anything, but good luck to them,” a 74-year-old manager said. A girl serving ice-cream next door could barely remember the pitch – “something about foreign aid?” – but said she assented to their request because “they were young, and looked like they were important”.

    Wyatt Roy, the 22-year-old local MP, joined the ambassadors for a barbecue lunch. Wearing sunglasses and a crisp white shirt with rolled-up sleeves, he stood on a picnic table and said, “In this job, very often do people come to me with problems, and very rarely do they come with solutions. Thanks so much for doing what you’re doing.” As the team left Bribie, a sudden downpour washed away the chalked messages. The ambassadors coasted into Canberra two days later, via Kempsey and Port Macquarie, late on Wednesday afternoon, with 47,000 digital signatures.

    The next morning, at seven o’clock, the various busloads from around the country assembled at Parliament House. A giant map of Australia had been painted on the lawn, and the eight hundred ambassadors stood within their respective state boundaries. Chanting slogans, they made a lot of noise. Greens MPs hung around. A cherry picker was on hand so that TV crews and Oaktree’s media team could take shots from above. Bob Carr, the foreign minister, addressed them. “We are on target for 0.5%,” he said, before turning and gesturing behind him. “It’s up to you to persuade everyone in that building that they’ve got to act!”

    Scores of meetings had been scheduled between ambassadors and their local MPs, but many representatives either cancelled or sent staff in their place. Julie Bishop, the shadow foreign minister, slated to speak at the morning assembly, sent her apologies, too.

    The bus trip home, via Sydney, was a long one. A question kept coming up: had they actually made a difference? Was Wayne Swan, the treasurer, any more inclined to heed their call to increase spending on foreign aid by a third, to 0.5% of gross national income? His sixth federal budget will answer that, on 14 May. No one is holding their breath.

  • A Conversation with Scott Bagby and Carter Adamson of streaming music service Rdio, February 2012

    The concept of paying month-by-month to stream music from your computer and smartphone remains a relatively new idea in Australia. In the last year or two, a number of contenders have emerged. Nokia has had their ‘Comes With Music’ service for a while now. Sony launched their ‘Music Unlimited’ product in February 2011. Hulking, canary-yellow retailer JB Hi-Fi launched their own streaming platform in December 2011, dubbed ‘NOW’. BlackBerry, Samsung and Microsoft all have proprietary systems operating in some capacity. Rumours abound of Spotify’s Australian launch. A site named Guvera offers a slight twist on the idea: ‘guilt-free’ mp3 downloads. None of these services have yet gained any real traction in the Australian market.

    Clearly, it’s becoming an increasingly crowded marketplace, as app developers and record companies alike cosy up to the assumption that most people don’t give a fuck about music ownership anymore. That whatever CDs, vinyl and cassettes they own gather dust on a shelf somewhere, immobile and largely useless in the era of interconnectivity. These companies believe that most music fans – ‘consumers’ – simply want the ability to take all the world’s music with them, wherever they go. For a monthly fee, of course.

    The newest contender on the Australian market is named Rdio [pictured above]. It’s web-based and also has apps for the main phone platforms (iOS, Android, BlackBerry… Windows Phone?). It was founded by a couple of the guys behind Skype, it’s been public in the States since August 2010, and it’s pronounced exactly like it’s written (‘radio’ minus the ‘a’). For AUD$13.90 per month, you get access to unlimited PC and mobile streaming of their library, which apparently consists of over 14 million songs. Ahead of a launch party at Bondi’s Beach Road Hotel in early February 2012, a couple of the Rdio guys flew me to Sydney, bought me lunch, and answered my questions as best they could.

    Andrew: How long has Rdio’s Australian launch been in the works?

    Scott [Bagby, VP Strategic & International Partnerships; pictured left]: I first came down to Australia to start the discussions at Easter 2011. We were pretty much sewn up by the end of the year. So not quite a year.

    There’s been a few streaming services available in Australia over the last few years, but none of them have had any real success in terms of market penetration. Is that fair to say?

    Scott: Streaming services on the whole, globally, are quite nascent. I was just hanging out with a bunch of labels. I can’t verify these numbers, but this label guy told me that worldwide, there’s only about 7 million subscribers, to any streaming service. It is very much in the early days of all streaming services. But the potential is huge. They’re planning on massive growth in the area, especially this year. I think you’ll find that here in Australia, as well. There’s still an education that needs to happen for the user to understand streaming services. [They need to] just learn about ‘em, and use ‘em, and get what I refer to as the ‘a-ha’ moment, of why streaming services are so much better than buying individual tracks.

    Carter [Adamson, co-founder; pictured right]: But seven million music subscribers in a world where everyone loves music? There’s a lot of room to grow. For ten years, we’ve had various fits and starts with digital music: DRM, tethered CDs, and that kind of stuff. We have services like Rhapsody in the US, who are stuck at around 600,000 subscribers. Now within the past year, you have more than a handful of services that have well over a million subscribers apiece. That only happened within the past year. You have markets like Australia, where 40% of all music revenue is digital music revenue. Korea’s over 50%. For the first time, digital music revenue globally is growing quicker [than physical sales]. I think we’re now at an inflection point with digital music subscription services.

    Scott: The timing’s also great, because of the iPhone and other smartphones. People want to take their music with them. Back in the old days, when I was travelling around I used to have a CD case [for a discman], but that’s just too much of a hassle now. With this streaming service, we have 14 million songs at your disposal, no matter where you are in the world. You can download songs to your phone, switch ‘em out; every Tuesday, there’s new releases [on Rdio]. These sort of things – that’s the education that has to happen, and that’s the ‘a-ha’ moment when you get all of that going. The perfect alignment of the ubiquity of smartphones is what’s really helping it along.

    Carter: Well, connected devices. Any single device that can talk to the internet is a playback device now. Whereas before you had one device; a record player, CD player, 8-track player. Now there’s a wide array of devices that are effectively playback devices, so it no longer makes sense to buy one song for each device. It no longer makes sense to port all the downloads that you bought a la carte via external hard drive to every single device that you have. The only thing that makes sense is for you to access it seamlessly wherever you are, using whatever platform or device you have.

    Using the US service as an example, what percentage of users are using Rdio on their phones?

    Carter: Over 85% of our subscribers are on the higher-priced tier. [Note: PC-only access to Rdio is AUD$8.90 per month – five bucks cheaper than the PC/phone combo.] And that makes sense, because the value proposition has always been seamless mobility. People always wanted to move their music around. No-one’s ever bought a song on iTunes to just play it on their computer. They’ve been waiting for 10 years for this whole seamless mobility thing to become a reality. Now it’s finally here.

    Scott: I think that’s one of the reasons that the music industry faced such a piracy problem in the past, because they didn’t offer it in a format in which people wanted to consume music. Now that it’s coming into that format, you see a lot of people moving into services like ours. They wanted to listen in several places at once, but they couldn’t, so the only way they could do it is to steal it. It was still happening up until a month ago in Hong Kong. Everyone was saying, ‘I want to buy music, but there’s no iTunes, there’s no digital services here. I can’t buy what I want; you leave me no choice but to steal it’. These people were lawyers, bankers – people that had the means [to pay], they didn’t want to steal it, they just didn’t have it.

    Carter: And also, the price has never been so low. We’re talking about 34 cents a day for access to the world’s music, across all your devices. That’s an insanely low price.

    Tell me about that education process you mentioned earlier. How do you turn seven million streaming music subscribers into seven billion?

    Scott: [laughs] Well, one of the benefits is to have your music everywhere and anywhere. Part of my job is to go around to all the different countries and get the rights sorted, so at least it’s available to everyone. Once it’s available, the education process is an ongoing one. And it’s one for the entire industry to be involved in. The best way to get there is to allow people to get that ‘a-ha’ moment. That moment comes at certain times, like when they’re at their friend’s place, they’re sitting around and they want to hear that song from their childhood that they’re all laughing about. Obviously no-one has it in their collection anymore, but then you – boom – you stream it down, you get a big laugh, and it kicks off. You can almost have Rdio and some beers, and you have a party.

    I think a lot of people would be using YouTube for that purpose at the moment.

    Scott: But YouTube, again, isn’t all that mobile. I mean, not as mobile as Rdio is.

    Which labels do you have on board for the Australian launch?

    Scott: We’ve got all the major labels, and we have some indies like Shock, MGM and Inertia. We won’t open up in any market, anywhere in the world, unless we have the domestic music, as well. At the end of the day, it’s about enjoying the content. That’s what makes a good service – the titles that you have. We have a whole team who just make sure that we have as much music as we can on the service. Funnily enough, I was just in Germany, doing a radio interview with a DJ. She is in love with Australian music, specifically Australian hip-hop. She used to fly out here, buy the CDs, then play it on her station. What she loves about this now is that she can now follow Australian influences [using the service], get the music that she wants, and find new music just through the service.

    Will Rdio have an Australian office?

    Scott: Yes.

    In Sydney, I suppose?

    Scott: We’re looking for some key players. Who’s the best person to hire? Once we find that person, they can determine where the office is going to be. Sydney, Melbourne, Brisbane, Perth… they’re all options. It all depends on who the best person is to run [Rdio] Australia.

    You talked about the ‘a-ha’ moment earlier. For me, when I was testing out the app, that moment was when I realised that Rdio had taken over the iPod player interface on the iPhone [ie the screen that appears when you’re playing music]. I thought that was pretty clever, how similar and familiar that screen was, even though I was using a web streaming service.

    Carter: Two of the most common pieces of feedback we receive: “I just deleted my iTunes collection because I no longer need it,” and “I’ve discovered more music on Rdio in the past two days than in the past two decades”. We’ve obviated a lot of what you would’ve needed iTunes for, and we’ve made it even better with the whole discovery [aspect].

    Scott: How we discovered music in our teenager years is we’d go to our mate’s house and you’d wait to hear their song. It wasn’t until you’d heard it a couple of times that you’d go out and buy it. It’s rare that you’d buy a song without hearing it first. That was one of the disadvantages that iTunes has; you couldn’t hear it without purchasing it.

    Carter: Every Tuesday, new music comes out [on Rdio]. You don’t have to pay a dollar a song, or eighteen dollars an album: you can play literally everything that’s out on Tuesday. You can save it to your mobile device, you can un-save it and throw it back into the water if you don’t like it. People are consuming more music now. I’ve never seen higher retention or engagement metrics in the 17 years I’ve been doing consumer software, or consumer services. It’s insanely high. People get on it, they love it, they use the hell out of it.

    The recommendation worked really well for me. It’s probably a simple thing, but it seemed to work better than most other services I’ve tried.

    Carter: We wanted to be the most comprehensive service out there. Unlike the other services, we offer a little of everything. We not only have the social music discovery stuff, which is always front and centre, no matter where you dial up the service; we also have the algorithmic recommendations, which you were playing around with. They’re getting better and better every day as we see more data, and learn more about you. We also have the on-demand aspect; “I know exactly what I want to listen to,” whether it’s a song or a playlist. And we have the passive listening stuff; “I like an artist, but I don’t really know which song or album to play. Just play me some of this artist’s songs, and maybe mix in related artists.” Or you can play your ‘heavy rotation’ or your entire collection as a radio station. Or your network’s ‘heavy rotation’, or collection.

    In the US… we haven’t carried it over anywhere else because no-one uses it, but we have built our own iTunes store. So you can buy [songs] a la carte in the US, but we found that no-one uses it, because once you’ve used the streaming service, there’s really no reason to buy stuff a la carte.

    How does the Australian subscription price point compare to the American version?

    Carter: Scott, I’ll let you take that one…

    Scott: [laughs] Thanks. The price point is heavily influenced by the rights holders. Between different markets, we have similar… every market to us is the exact same. So the price point basically was just taking into [account] what we had to pay the artists, the labels and publishers. How does it compare? Unfortunately it’s more expensive than the US market. That was just due to market circumstances when we came here. But we personally didn’t treat Australia any different to the US.

    How do you pitch the service to fence-sitters? Those people who say they love music, but rarely pay for it. They might go to a lot of shows, but most of the music they download is via torrents and other shady methods, not via iTunes or equivalent stores.

    Scott: I think in general, most people want to do the right thing. Music lovers want the artist to get paid. I’ve never come across a music lover that says, “Screw the artist, I want to steal from them”. I think the key is making the service as easy and quick to use that it’s almost the default. So that you’re almost paying for the convenience. Instead of researching on BitTorrent, I have ‘social discovery’ [on Rdio]. I’ve built my playlists around my influencers. I like a particular DJ, and a good friend of mine knows a lot about music, so it just kinda bubbles up [in my playlist]. What used to take me a half hour of reading different music blogs and listening to their tunes, it just comes to me easily, now. As Carter says, discovering more music in two days than in two decades – that is what’s going to engage these music lovers, and make it worth them spending the money that they would otherwise gain through BitTorrent.

    Can the service be used offline, or do you have to be connected to a 3G network or equivalent for it to work?

    Carter: You can save as much music as you want to your device’s memory card. So if you have a 32gb iPhone, you can save that much. Again, for 34 cents a day – instead of spending $10,000 to fill up your iPhone or iPad…

    The mp3s are saved onto the device’s hard drive?

    Carter: They’re locally cached, yeah.

    Has that been hacked yet?

    Carter: Not yet. [laughs]

    What are the most common comments you get when people are engaging with Rdio for the first time?

    Scott: The people who’re born before 1980, their concern is: “why am I just renting my music? I want to own it; I want to have a collection.” I think that’s just a lack of understanding of the access model. It almost goes back to the heyday of having a massive CD collection, and looking at it, touching and feeling it. But more and more, as that moves on… there are a lot of 21 year-olds who’ve never owned a CD. So that question is more of a theoretical until they start using the service, and then they realise, “Hey, I can hear all my songs, and it’s actually better because I can hear my entire collection no matter where I am, not just in my house.”

    Carter: I think there’s a general lack of knowledge. Most mainstream consumers don’t understand why they need a service like this, but strangely, they’re already doing it with other types of services, like movies, videos and books.  You have a digital book reader; you pull down your books electronically, you don’t have a physical copy. Same with video. They’re getting the fact that, “Oh yeah, this is what I do with other forms of content. Now I have this wide array of connected devices, I don’t need to buy one song for every device.” But I think there’s a general lack of education on why you need the service. I don’t think it’s a resistance, per se.

    The desktop client – which is optional to download – has a matching feature, which looks at the music on your iTunes or your computer, and if we have the rights to stream it, it automatically moves it to your Rdio collection. It’s kind of like a locker service, for those people who’ve paid a ton of money – or any money at all – buying digital downloads a la carte. We do that as well. We make it an easier transition.

    Going back to what you were just saying about existing libraries; part of my job is being a record critic. It shits me to tears when labels still insist on sending me a CD – which I’ll rip to mp3 immediately anyway – rather than supplying the mp3s so that I can hear the music instantly.

    Scott: The industry itself is still in a physical mode. It’s turning around. I get CDs all the time, but I don’t have a CD player. My laptop doesn’t have a CD drive. I can’t rip the CDs. I say “thank you very much” and I usually hand ‘em over to the maid at the hotel. [laughs] It’s a transition period.

    Carter: In general, we’re leaving a hit-driven business when you move to services like this. It’s a more personalised view on music. You follow specific people because you like their taste in music. You don’t go to Rdio and look at a ‘top 50’. You go there and you look at what’s relevant, what your friends are listening to. That is a fundamental shift in the industry – along with the mobility [the app allows].

    I want to touch on what artists are being paid through Rdio. As I’m sure you’re aware, Spotify had some bad press about how little artists were being paid per-stream. What’s your model like compared to Spotify’s?

    Scott: The model’s similar, because the tariff is going to be similar.  There’s a couple ways to approach this question. First and foremost, we don’t know about the labels’ relationships with their artists. Those are confidential. I have no idea how the labels are paying the artists. I know the majority of our revenue goes to the rights holders. How that’s being distributed afterwards is a black hole as far as I’m concerned. Having said that, there’s other ways to look at this. Net present value of money and all that other stuff aside, if you buy a [music] download, you only get paid once. That person can listen to that song thousands and thousands of times and you don’t get paid for that. On Rdio, you get paid every single time that song gets played. If it’s a good song, and it goes on for a long time [in terms of popularity], you’ll get paid a lot more than you’ll ever get paid than by a [single] download.

    The second way of looking at things is, there’s been cases where artists or labels will pull their music off streaming services off Spotify. It was funny, because this label guy I was talking to – the one I mentioned earlier – was talking to a big artist of his. He turned around and said, “OK, you want me to pull it off streaming for these reasons? That sounds good. So you want me to close YouTube as well, and also the radio?” [The artist] was like, “No no no, keep those open…” The label guy was like, “Hang on a second. You make 200 times more on the streaming service than you do on YouTube, and 150 times more on the streaming service than you do on the radio. So… I don’t understand your reasoning.”

    So I think there’s another education [required] on how these [services] can help and build the labels. The actual money pool for these artists, as of 2011 – two months ago? It probably was too nascent, too small to be anything significant to walk away from. However, the way that the ‘hockey stick’ [graph] of digital music and streaming services are going? I don’t think you’ll see those same stories this time next year, because the pie is getting bigger. That is one of the biggest complaints – that dollar-for-dollar, they’re not getting as much from our service as they are from iTunes. But the iTunes pie is a hell of a lot bigger than seven million people worldwide. I understand the gripe now – again, I don’t know what [the artists] are getting from their labels – but if they look at it in a promotional way and also that this is a nascent service and it will grow, you’ll see more and more people come online and stay online.

    Carter: In a nutshell, we’re driving up music consumption. Once people are on this service, they’re listening to a lot more music. As Scott said, there’s been a model shift in terms of how they’re paid. So you’ll no longer get paid from only one transaction; you get paid each time you play a song. And we’re driving up consumption. So theoretically, that should even out very soon, as we get to scale. The other part of the equation is, we’re hitting segments of the music value chain that have never paid for music, or only pay $30 or $40 a year through iTunes gift cards. We’re reaching new segments. More people will be paying for music again, as we reach scale.

    Scott: And not only that, but the smaller independent labels in each country – because we do worldwide deals – we’ve now given them reach, very quickly and with no cost to the label or artist. In America, in Brazil, in Germany. That exposure can translate into a great opportunity that they’ve never thought of before.

    Carter: They can be big in Japan.

    Scott: Yeah – it’s not just a t-shirt! [laughs] Going back to our Skype days; when we first launched Skype, we had no idea that Brazil was going to be as big as it was [in terms of users]. It was huge. I’m sure there’s some artists sitting here going, “I don’t know if we can do stuff in Brazil.” Now they’re getting feedback from streaming services and they’re like, “OK, everyone in Brazil is streaming our music, now it makes sense for us to tour there, rather than taking a blind punt.” Or maybe they wanted to go to Rio anyway, which is an understandable blind punt. But this sort of exposure is global, at very, very little cost.

    Those are some well-rehearsed answers to a very hard question.

    Scott: [laughs] Well, we think about it. It is a concern for us. Because if all of a sudden, the artists don’t want to be on streaming services, we’re in trouble. But we’ve thought about it. It’s an industry-wide discussion.

    ++

    Andrew McMillen (@NiteShok) is a freelance journalist based in Brisbane, Australia.

    For more on Rdio, visit their website.

    Edit, June 2012: I wrote a feature story for The Global Mail named ‘Unchained Melodies’, which examines the streaming music market in Australia following the launch of Spotify. Click here to read it.

  • Junior ‘Issues’ story: ‘Concert ticket scalping in Australia’, October 2010

    Junior is a new street press started by the folks behind Scene Magazine here in Brisbane. 115,000 copies are distributed monthly throughout QLD, NSW and VIC.

    I was commissioned to write a feature for their first issue on the topic of concert ticket scalping. Click the image below for a closer look, or read the article text underneath.

    Issues: To Scalp Or Not To Scalp?

    No discussion associated with live music is as emotionally-charged as ticket scalping. Junior spoke to several key players within the live music industry to gauge their opinions on the issue.

    “It’s a difficult issue, as in some ways it is a free economy and the laws of supply and demand apply,” begins Chugg Entertainment managing director, Matthew Lazarus-Hall, whose company is currently touring acts like Gorillaz and Rufus Wainwright. “The greater challenge is: would the general public accept dynamic pricing from the start? Do people really care that someone paid more or less than the person they’re sitting beside?”

    Lazarus-Hall refers to the practice of changing prices at regular intervals – every few minutes, hours or days – based on actual consumer demand. Introducing dynamic pricing would mean that the quality of a seat directly correlates to the ticket price. In real world terms, it’d mean that those sitting closest to the stage opt to pay more, while those poor souls stuck in the nosebleed section would likely pay substantially less.

    This differs from the existing systems offered by Ticketek and Ticketmaster, wherein a flat rate is applied to all seats within particular sections, regardless of their distance from the stage. For example, ticket holders Row AA in section 42 of the Brisbane Entertainment Centre pay the same as those in row ZZ, despite the spatial difference.

    “There are about 20 different price types on a plane trip from Sydney to Melbourne,” Lazarus-Hall continues. “Same destination, same experience, and people do not care. Whereas at concerts, people are far more emotional and there’s a perception that the person sitting next to you should pay the same – except when scalping is involved.

    “Our preference is that scalping didn’t happen, as the artist misses out on the revenue. We do the best we can [to avoid scalping], but we do not need more legislation,” he concludes.

    National ticketing company Moshtix – who provide service for a wide range of music events, like Splendour In The Grass – welcomed a June 2010 Commonwealth Consumer Affairs Advisory Council (CCAAC) review into ticket scalping by conducting their own survey, which garnered responses from around 750 Australian gig-goers. Over half of respondents (54%) had purchased a ticket through an onseller; around a third (35%) had paid more than the market price.

    According to Adam McArthur, Moshtix general manager, there’s simply no need for scalping. “We’re against it, because we’ve found that, with the use of some technology tools, you can eradicate scalping without penalising the original ticket purchaser.” These tools include limiting paper ticket delivery by issuing tickets electronically; collecting the names and birthdates of attendees and verifying these details at the point of entry; and a resale facility, which allows ticket holders who can no longer attend events to securely return their ticket to the market.

    No such measures have been adopted by Australia’s two biggest ticketing companies, Ticketek and Ticketmaster.

    “If they’re not being pushed to do it, then why bother?” asks McArthur. “Both Ticketek and Ticketmaster haven’t been challenged in that large arena market for some time. They just keep offering the same services, because they don’t need to change.” Despite these frustrations, he disagrees with the notion of Government intervention. “Legislation is really difficult to enforce in this industry, so the best thing the Government could do is put some broad guidelines in place.” McArthur notes secure ticket delivery and resale facilities as his top two concerns.

    “The government question is hard,” admits the man behind Andrew McManus Presents, whose company is presenting forthcoming tours from Brian Wilson and Guns N’ Roses. For him, it’s more about “the need to make people aware of the risks of buying a scalped ticket, rather than trying to stop scalping.” McManus does point out, however, that he’s against the act of scalping for profit. “On a personal level, it’s unfair for those who line up, wait for hours and miss out on tickets due to some loser buying 50 and selling them on eBay for three times the price, just because he knows the fans will buy it. We put on shows for the fans, not for scalpers to make a buck.”

    Andrew McManus Presents always set a per-transaction ticket limit for their shows in an attempt to curb scalping. The ticket limit “varies from show to show, but is always in place. We also monitor eBay and other similar auction sites,” the promoter says. “Anyone found selling our tickets for profit runs the risk of being reported and having their listing removed, or even having their tickets cancelled. I don’t think sites like eBay should intervene on their own, but if a promoter tells them to take something down, they should. And for the most part, they’re pretty good at doing that for you.”

    “We do get the odd request from venue owners and promoters, but it’s very rare,” admits eBay Australia‘s Head Of Corporate Communications, Daniel Feiler. “Generally though, unless it’s legislated, we don’t remove the tickets. In Australia, there are laws in Victoria and Queensland around resale of certain types of tickets.”

    At present, the only Victorian event impacted is the AFL Grand Final, to which tickets cannot be sold above their face value. In Queensland, it’s unlawful to sell tickets for events held at eight venues – including the Brisbane Entertainment Centre and Suncorp Stadium – for above 10% of their face value.

    “If someone does sell a ticket that’s above 10% for an event where the legislation applies, it’s up to the Queensland Police,” says Feiler. “If they want information about either the buyer or seller of that particular trade, then we’ll provide them with the registration details of those people. Then it’s up to them to choose to make an arrest or issue a fine.”

    Feiler points out that, for a “blockbuster” event held at Suncorp Stadium – which holds around 52,000 people – typically, only a few hundred will end up on eBay.

    “That’s the story that people don’t necessarily hear about,” he says. “There’s an assumption that just because the tickets are being sold on eBay, they’re being sold above face value. Our experience has always been that if you put the tickets in the hands of genuine fans, they’re unlikely to sell them, as they desperately want to go to an event. It really comes down to the promoter, and whether they want to put the systems in place to make sure that genuine fans get tickets first. We don’t see it as eBay’s role to fix up an issue that may or may not be created by poor original distribution in the primary market.”

    Enough philosophising about this issue. Junior went straight to the source, and spoke with a pair of ticket resellers (or scalpers, depending on whether you consider it to be a pejorative term): one who operates on eBay, and one who doesn’t.

    Stuart Hamilton runs a full-time ticketing business under several eBay usernames , including Chilli Entertainment, though eBay accounts for only “a small part” of his customers; most of his business comes from corporate clients. At the time of writing, Hamilton has over 100 ‘buy it now or make an offer’ listings for events which range from concerts like U2, The Wiggles and Iron Maiden, to non-music events like the AFL Grand Final, The Footy Show and Robin Williams. Is the business profitable?

    “Yes and no. At the end of the day, I cover the over heads and make a good wage similar to a middle manager’s wage at any major company,” says Hamilton, who started the four-year old business after leaving his role as senior sales manager. His decision came at a cost: “I often do 10 hours a day on the computer, doing the shit that needs to be done. It’s high stress and high risk: you can lose thousands on a concert if you get it wrong. The trick to this game is to know when to cut your losses, quick. To be honest, I wonder if it’s all worth it at times, and I do have my eye open to new opportunities away from reselling.

    “Sometimes we get a big premium for an outstanding located seat,” he continues. “These are usually purchased by a wealthy person who just wants the best. But we don’t get many of the best tickets – maybe four or six per concert if we’re lucky – so we have to make the most of the ‘big hits’, as it’s not always roses.”

    To illustrate, he points to his tickets to Powderfinger in Perth, which he’s currently selling for half price ($49 each), thereby losing about $70 a ticket. “With 30 of them, that hurts,” he admits. Some of his customers are happy to pay $60-$120 more for a good ticket simply because they “don’t have the time to go through all the stress and headaches of purchasing from Ticketek, whose internet systems often crash during a big-event sale.”

    Hamilton seems content with his role as reseller. “We provide a good service for those who want convenience of purchase, and we’ll often get a better ticket than they could get themselves anyway. If it’s through a safe marketplace like eBay, 99% of the time, no-one will get ripped off. Let the fans have a choice: they don’t have to buy off a reseller, but they then have to make sure they make the effort to get their tickets early.”

    Several independent ticket brokers operate outside of the eBay realm, three of whom were publicly dissed by Suncorp Stadium general manager Alan Graham on brisbanetimes.com.au in mid-September: Red Circle, worldticketshop.com, and ticketfinders.com.au. Simon Williams, manager of the latter website, was none too pleased by being tagged by Graham as an “unscrupulous operator”.

    “We’re not a fake website,” he tells Junior. “We source and supply tickets to hundreds of clients every year, and fulfil our obligations every time. We do not rip anyone off.”

    At time of writing, Ticket Finders’ prices for access to the ‘sold out’ 8 December U2 concert in Brisbane range from $175 (general admission) to $950 (‘Red Zone’ area); face value for these tickets were $99 and $350, respectively. Their web form allows customers to request up to 50 tickets per section.

    “Call it scalping if you want, but ticket broking has been around as long as there’s been tickets for events. We operate in a free market based on capitalist ideals. What’s the difference between buying and selling houses and cars, and pieces of paper?” Williams asks. “I think it’s hysterical that people get so worked up about it. Of course, a ticket’s got more of an emotional attachment to it.”

    “We provide a service: people can’t find a ticket, then we’ll find it. We pay a premium ourselves to find it, and we charge a premium on top of that. It’s not any different to people buying and selling cars or houses, or any commodity. It’s not like we’re selling drugs or weapons.”

    For more information on Junior, visit their website – which, at the time of publishing this blog entry, is still under construction.